Experts have charged the managers of housing corporations and developers in the real estate sector to come up with realistic plans for sustainability of rental housing in the country.
They made this call at the national workshop organised by the Association of Housing Corporations of Nigeria (AHCN) in Uyo. While making this call, the Chief Executive Officer, Family Homes Funds Limited, Femi Adewole revealed that Nigerian housing market sector was struggling with causing an increase in pressure and demand for housing that are affordable because of increasing rate of urbanisation.
He further stated that it was important that stakeholders in this sector must develop sustainable plans in place for the increasing affordable rental housing demands for the low and middle-income earners.
Since Nigerian cities are some of the fastest in the world, Adewole noted that over 80 per cent of urban dwellers rent their homes from informal landlords, which most times it’s not out of choice.
“There are less than 100,000 mortgage loans representing a small percentage of the population. Most of the new homes being built are unaffordable to people on low to medium income,” Adewole added.
Reiterating his position on the subject, he stressed that the formal rental housing has potential for the significant demand with future growth envisaged as urban areas grow and mobility increases. Noting that, there will be low competition for the corporations because most of rental housing available for people on low/medium income is informal, poor quality, insecure and inequitable and strong potential for creating long term financially sustainable housing organizations.
Adewole alluded to the fact that Singapore’s public housing agency formed in the 1960s; houses about 85 percent of Singapore’s 4.5 million people while 78 percent of residents enter home ownership through rental.
An ex-banker, Tony Okogwu in his contributions highlighted several issues that have contributed to the housing deficit in the country. He said, poor performance among housing agencies on lack of direction, vision and mission to drive the organisation and make it relevant in emerging property market are some reasons the sector is struggling.
Also speaking, the Executive Secretary, Association of Housing Corporations of Nigeria, Toye Eniola pointed out that despite the challenges in getting funding faced by housing agencies, there are golden opportunities for funding options.
Highlighting these funding options she said there funds for development, fund for rental, for land bank development and off-takers loans support.
“Let’s take advantage of the followings, Family Homes Fund opportunities, the Federal Mortgage Bank of Nigeria, labour and cooperative societies, relationship with government, off-takers data base from the civil servant in the state, and bank and use your assets to create wealth,” Eniola added.
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